Asia Holds the Cards When it Comes to the Euro’s Future

By

Nicholas Hastings

Nov 26, 2010 3:20 pm GMT

The biggest threat to the euro is now Asia.

As the debt crisis rumbles on, undermining the strength of the single currency and bringing the whole euro-zone project to the brink of disaster, there may well come a point when Asian central banks will decide they have had enough.

Despite the 7% fall in the euro against the dollar since the start of this month, central banks in Asia have remained loyal.

They have repeatedly come to the euro’s rescue, often buying the currency when other investors have shied away, preventing it from sliding into a free fall.

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